Traditionally, it was an almost universally accepted idea to take less investment risk in later retirement and beyond. Why? Because…
you’d probably die just a few years after retirement
You had to buy an annuity when you retired, plus the state pension gave a head start to income
Fixed interest gave you a decent return for little risk, and serving to hedge interest rate risk when buying an annuity
But as we all know…
Living 30 years after retirement is not uncommon now, and longevity is predicted to increase further
The choice, and responsibility now rests with you the client, and the state’s contribution is minimal and declining
Fixed interest returns, and stability in bond values, have been undermined by QE
So, perhaps traditional investment risk approaches should be going the way of the dinosaurs.
We can provide you with…
Academic research to show and support a more suitable investment approach
Cash flow modelling
Investment solutions which are fit for purpose, whether this be funds or model portfolios
Do let us know what you would like.